Taxability of Salary received from Indian company- Salary income of non-resident received or accrued in India shall be taxable in India. Salary income received from Indian resident employer shall also be taxable in India. If the services are rendered outside India and the salary is received from Indian company, it shall be taxable in India if the non-resident does not stay more than 183 days in that country or the Indian employer does not have Permanent Establishment (PE) or Fixed Base in that country. Taxability of Income of Non-Resident Individual  .

Taxation on salary received by government of India/ foreign country- Salary payable by Indian government to a citizen of India for the services rendered outside India shall be taxable in India. Salary paid by a foreign government to its citizen for rendering services in India shall not be taxable in India. However, the salary payable to the Indian nationals by a foreign government shall be taxable in India. If the foreign government is carrying on business in India and has paid salary to its employees, then it shall be taxable in India.

Taxation on Income from property or assets situated in India- Income from immoveable property shall be taxable in India if it is situated in India. Income attributable to Permanent Establishment or Fixed Base situated in India shall also be taxable in India.

How capital gain arising in India would be taxable in the hands of non-resident- Capital gain arising on transfer of immovable property it will be taxable in India if such property is situated in India or forming part of the PE situated in India. For other moveable assets, the income will be chargeable as per the provision of Income Tax or DTAA whichever is more beneficial to the assessee, if there is treaty between India and other country. If there is no treaty available then it shall be taxed in India as per the provisions of the income tax act.

Taxability of royalty income or fee for technical services- Income by way of royalty or fee for technical services payable to a non-resident arises through a Permanent Establishment or Fixed Base situated in India shall also be taxable in India. If such income is not arising through PE in India then it is chargeable as per the provision of Income Tax or DTAA whichever is more beneficial to the assessee, if there is treaty between India and other country. If there is no treaty available then it shall be taxed in India as per the provisions of the income tax act.

Taxability of Interest income- Income by way of interest payable to a non-resident arises through a Permanent Establishment or Fixed Base situated in India shall also be taxable in India. If such income is not arising through PE in India then it is chargeable as per the provision of Income Tax or DTAA whichever is more beneficial to the assessee, if there is treaty between India and other country. If there is no treaty available then it shall be taxed in India as per the provisions of the income tax act.

Personalized Tax Returns Prepared & Filed by Tax Experts